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Allowance of Expenses

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 May 2010 Purchase a bike (motor cycle) from Cash for the busioness purpose whether it is disallowed u/s 43A(3) of income Tax Act..

Thanx in advance

26 May 2010 No it is not

26 May 2010 No it is not


26 May 2010 The cash payment for the capital expenses is not disallowed.

26 May 2010 AGREED, IT IS ALLOWED.

26 May 2010 Section 40A(3) does not apply to expenditure which is not to be claimed as deduction u/s 30 to 37.
Purchase of bike is capital expenditure.
Under section 37, only revenue expenditure is deductibele.
Hence 40A(3) is not applicable to purchase of bike in cash.



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